E9-12 Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets [LO 9-6]

Bluestone Company had three intangible assets at the end of the current year:

1. A patent purchased this year from Miller Co. on January 1 for a cash cost of $1,600. When purchased, the patent had an estimated life of 8 years.
2. A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $240,000 because it has an indefinite life.
3. Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to have a six-year useful life to the company.

just need help with 3B

41 E9-12 Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets [LO 9-6) 0.55 points Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $1,600. When purchased, the patent had an estimated life of 8 years. b. A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $240,000 because it has an indefinite life. C. Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to have a six-year useful life to the company Required: 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3A Req 3B Show how these assets and any related expenses should be reported on the balance sheet for the current year. (Negative amounts should be indicated by a minus sign.) BLUESTONE COMPANY Balance sheet (partial) At December 31 Intangibles: Patent Trademark Licensing Rights Accumulated Amortization $ $ 1,600 10,000 42,000 0 X $ $